January 8, 2014

Jumping in and out of the stock market is a terrible mistake. Why?

2 thoughts on “January 8, 2014”

  1. Chris says:

    It is very difficult to successfully time the market, you’re better off going to the casino. Often times we let our emotions and other people’s (salesmen) hype get to us. Jumping in and out of the market is not the way to be a successful investor. The best thing to do is to invest in no-load index funds and let your money work for you. These funds will give you a good return at a nominal cost over the long run. Own ALL American business and own it Forever. A good place to get started with index funds is at Vanguard.com.

  2. Mike Finley says:

    Great answer, Chris! Let’s recap.

    Most of the big moves in the market occur on a select amount of days. If you are not in the market on those days you will miss most of the positive returns that come with stocks. When are those days? Nobody knows. NOBODY KNOWS! Do not listen to others who tell you they know, THEY DON’T.

    Once you accept this reality you will stop playing a game that cannot be won (buying low and selling high for example). Follow Chris’s advice. Own no-load index funds within your 401(k) and outside your retirement accounts at a place like vanguard.com. Feed those accounts each and every month and ignore the babbling idiots on television and elsewhere telling you what to buy and what to sell. You have become the wise and efficient investor.

    Still not sure? Let’s see what this guy has to say: http://www.youtube.com/watch?v=idr6c8NHuWs

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